Gorman-Rupp 1Q10 Sales Dip 8 Percent

The Gorman-Rupp Co. last week reported net sales and earnings for the first quarter ended March 31, of $65.8 million compared to $71.6 million during the same period in 2009, a decrease of 8.1 percent. Net income decreased slightly to $4.49 million compared to $4.50 in the first quarter 2009, a total decrease of 0.2 percent. Earnings per share were $0.27 and $0.27 for the two compared periods.

Net sales during the quarter continued to be negatively impacted by the global recession. The markets with the largest declines include fire protection, government and custom pump applications.

Although sales were lower, earnings for the quarter were similar to the first quarter of 2009 due to continuing cost savings implemented in 2009. These cost savings also contributed to the 5.2-percent increase in operating income. In addition, pension expense decreased $0.02 per share as a result of the rebound in the equity markets during 2009. Offsetting this decrease was increased depreciation expense of $0.02 per share primarily due to the Mansfield Division’s new facilities.

“Customer order growth is encouraging, especially in the commercial and international fire protection markets,” said Jeffrey Gorman, president and CEO. “The economy appears to be starting to recover from the global recession, but we continue to remain cautious until clearer signs of a solid recovery in the capital goods sector become more evident. We are pleased with the continued collective effort of all our locations to control costs while improving productivity, resulting in our earnings for the quarter being comparable to first-quarter 2009 even though sales decreased. ”

The company’s board of directors declared a quarterly cash dividend of 10.5 cents per share on the common stock of the company, payable June 10, to shareholders of record May 14. This marks the 241^st consecutive dividend paid by The Gorman-Rupp Co., which is headquartered in Mansfield, Ohio.